Macau welcomes the return of Chinese tourists once more.

In November, Macao intends to welcome tourist groups from mainland China once again, as stated by the city government. The objective behind this initiative is to boost the daily visitor count to 40,000, while also implementing stricter travel regulations in the event of a resurgence in the Covid outbreak.

Statement of Facts

In accordance with China's stringent measures to combat Covid-19, the Chinese government implemented a ban in July preventing any Chinese citizens from traveling to Macau, the renowned gambling haven in Asia. This preventive measure was taken in response to the increasing number of confirmed Covid-19 cases within the city. China's zero-tolerance policy towards positive cases of the virus has resulted in a collective and proactive approach in containing its spread. Consequently, the Macau authorities have been diligently working to eliminate any remaining traces of the virus on the island. Recently, they have made a formal request to the Chinese authorities, urging them to once again permit tourists from mainland Chinese cities to visit Macau.

Macao's tourism industry, renowned for its casinos and lively entertainment scene, has been severely affected by the strict travel restrictions implemented as a result of the Covid pandemic. As a popular tourist destination, people typically travel to and from Macao via the Chinese mainland. However, the significant decrease in the number of Chinese visitors has resulted in a drastic decline in city games revenue, which halved in August compared to the previous year. Therefore, the recent approval from the Chinese central government is viewed as a highly positive development that will greatly benefit the recovery of Macao's tourism industry and help boost its economic revival.

An economic boom

In July, Macau faced a significant setback when it temporarily shut down most of its casino operations for a fourteen-day period. This was a result of the strict zero-tolerance policy imposed by China to combat the spread of Covid-19 and the subsequent ban on visitors to Macau, which is widely recognized as the largest gambling hub globally. The closure proved to be challenging for casino companies, such as Las Vegas Sands and Wynn Resorts, which have been grappling with difficulties in recent years. However, there is now a glimmer of hope on the horizon as Macau City authorities recently announced that Chinese tour groups could potentially return to the casino gambling center in November. This news has sparked a surge in US-listed casino stocks, igniting optimism within the industry.

To boost the local economy, the Macao government aims to attract even more tourists, particularly from mainland China. According to various surveys, the majority of visitors to the island are tourists from mainland China, who contribute more than 50% of the city's income from tourism. These tourists spend thousands of dollars daily in the city's multiple casinos, hotels, and restaurants. The short-term goal is to double the number of daily visitors to 40,000. However, the government also recognizes the importance of implementing barrier gestures, tightening health controls, and imposing travel restrictions if there are any potential Covid outbreaks in the future.